ST. LOUIS - Free-agent righthander Pedro Martinez has signed a one-year contract with the Phillies, who will announce the signing today, a person with direct knowledge of the transaction said last night.

Martinez, 37, underwent a physical yesterday at Thomas Jefferson University Hospital in Philadelphia conducted by team medical staff. Although the Phillies would not comment last night about the physical, several people in Martinez's camp said it went well.

According to a baseball source, the contract is worth about $1 million, and Martinez could make an additional $1.5 million in incentives based on starts and time on the active roster.

A baseball source also said Martinez could join the Phillies in Miami later this week to work out with the team before beginning a minor-league assignment.

An Internet report last night said that Martinez had passed his physical. Phillies general manager Ruben Amaro Jr. offered only a "no comment" when asked about that news. The team would be highly unlikely to announce a signing on the day of the All-Star Game, which would risk upstaging the event.

Martinez is 214-99 with a 2.91 earned run average in 17 seasons. Last year, he was 5-6 with a 5.61 ERA for the New York Mets.

"If we were to bring him in, it would not preclude us from doing other things," said Amaro, who is engaged in efforts to acquire Toronto righthander Roy Halladay, among other pitchers.

Martinez would likely need several minor-league starts before joining the Phillies.

Approached by an Inquirer reporter after the physical, the three-time Cy Young Award winner said: "We're going to talk baseball right now? Here in the street? Man. Get a stick. . . . We'll talk later. Nothing is confirmed yet, and we're still working, so take it easy. I'll talk to you guys later, OK?"

All the Phillies in attendance at the All-Star Game expressed optimism Monday when asked about Martinez.

"I think he is going to fit in great with our club, and he's still got some bullets left," rightfielder Jayson Werth said.